The Albany Gazette - 1933 Industries Reports Second Quarter 2025 Financial Results

The Company owns 91% of Alternative Medicine Association (AMA), the Company's cultivation and production subsidiary centred on the medical and adult-use cannabis market. Focusing on quality and value offerings, the Company wholesales cannabis flower, pre-rolls and boutique concentrate products under its proprietary AMA brand to retail accounts in the state of Nevada. AMA branded products consistently rank as top sellers based on volume in the state and the Company is a key supplier in the Las Vegas market.

Q2 2025 Highlights

• Revenue of $4.4 million

• Gross profit of $1.5 million

• Gross margin of 35%

• Net loss of $0.3 million

• 2 ^nd place ranking in the Nevada flower category

FISCAL 2025 AND FISCAL 2024 CONSOLIDATED OPERATING FINANCIAL HIGHLIGHTS

Revenue

• During Q2 2025, the Company recorded revenues of $4.4 million, an 11% increase over Q1 2025, reflecting an uptick in the Nevada cannabis market and demonstrating the strength of the AMA brand and its position as one of the top 5 selling brands in the state. Total revenues for Fiscal 2025 were $8.4 million and $9.8 million for Fiscal 2024. The decrease is attributed to slower retail sales in Nevada during Q1 2025.

Gross Profit

• The Company generated gross profit of $1.5 million in the current period compared to gross profit of $1.4 million in the prior year comparable period. Gross profit was $2.8 million for Fiscal 2025 and gross profit of $3.0 million for Fiscal 2024. The decrease in gross profit was primarily due to slower sales in Q1 2025.

Gross Margin

• Gross margin calculated as gross profit divided by revenue was 35% in Q2 2025 and 30% in Q2 2024 and 34% in Fiscal 2025 and 31% in Fiscal 2024. The increase is attributed to operational efficiencies in cultivation and production.

Expenses

• During the reporting period, expenses decreased to $1.8 million from $2.0 million in the prior year comparable period. Expenses were $3.7 million for Fiscal 2025 compared to $4.0 million for Fiscal 2024. The decrease from the prior year was primarily due to reduced wages and benefits.

Net Loss

• Net loss for Q2 2025 was $0.3 million compared to $0.6 million in Q2 2024. Company-wide, Fiscal 2025 net loss was $0.89 million and comprehensive loss was $0.7 million, compared to Fiscal 2024 net loss of $1.0 million and comprehensive loss of $0.6 million in the prior year comparable period.

Management Commentary

Overall, Nevada cannabis retail sales rebounded from the previous quarter, reflecting higher top line sales. AMA flower and pre-rolls gained market share and growth over the reporting period, ranking second as one of the most sold brands by volume. ^[1] AMA's solid position in the market highlights its ability to gain shelf space in dispensaries across the state and demonstrates increased consumer preference due to its consistent quality and value. AMA's ranking in the cannabis flower and concentrates category remains robust where it has maintained its second position, despite declining flower pricing and market contraction.

Financial statements are prepared in accordance with IFRS® Accounting Standards issued by the International Accounting Standards Board ("IASB") and the IFRIC® Interpretations of the IFRS Interpretations Committee. Detailed information regarding the Company's financial results as well as management's discussion and analysis can be found at https://sedar.com/ and https://1933industries.com/investors/financial-information

About 1933 Industries Inc.

1933 Industries is a Nevada-based licensed producer, focused on the cultivation and extraction of a large portfolio of cannabis consumer products in a variety of formats under its flagship brands, Alternative Medicine Association (AMA) and Level X. Its product offerings are cultivated at the Company's 68,000 sq. ft. indoor facility and marketed directly to retail dispensaries. AMA branded flower, infused pre-rolls, and in-house boutique concentrates consistently rank as the top products sold in Nevada. For more information, please visit www.1933industries.com

For further information please contact:
Alexia Helgason, VP, Investor Relations
604-728-4407
alexia@1933industries.com

Brian Farrell, Chairman and CEO
brian@1933industries.com

Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.

Notice regarding Forward Looking Statements: This news release contains forward-looking statements. The use of any of the words "anticipate", "continue", "estimate", "expect", "may", "will", "project", "should", "believe" and similar expressions are intended to identify forward-looking statements. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. These statements speak only as of the date of this news release. Actual results could differ materially from those currently anticipated due to a number of factors and risks including various risk factors discussed in the Company's disclosure documents, which can be found under the Company's profile on www.sedar.com . 1933 Industries undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

[1] https://www.headset.io/brands/alternative-medicine-association-ama

SOURCE: 1933 Industries Inc.

View the original press release on ACCESS Newswire

(C.Young--TAG)